AirTran to Furlough 169 Pilots

sleepy

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AirTran lays off 169 pilots

Most of airline’s job cuts will be in Atlanta

By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, August 22, 2008
AirTran Airways said it notified 169 pilots this week that they will be furloughed as the airline shrinks its flight schedule and cuts costs.
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  • The pilots will be furloughed effective Sept. 3. They will have rights to be called back to work, according to AirTran spokesman Tad Hutcheson.

AirTran, which is based in Orlando and has its largest hub in Atlanta, has about 8,900 employees. The carrier is cutting its work force as it shrinks its flight schedule by 7 percent to 8 percent during the last four months of the year.
AirTran had earlier said it would need to cut about 300 flight attendants and 180 pilots to reduce annual costs by about $16 million. Although the company generated enough requests for leaves to avoid furloughing flight attendants, only about five pilots decided to take leaves.
Most of the job cuts will be in Atlanta because all of AirTran’s 1,450 pilots are based here.
“The company is very lean, and we have not been backfilling when people leave in certain areas,” Hutcheson said. “We are continuing to do everything in our power to keep our costs as low as possible.”
As AirTran tries to cut costs to cope with high fuel prices, it also has been trying to negotiate with employees to cut their pay by 5 percent to 15 percent, but mechanics and flight dispatchers already have voted against the cuts.
Separately, Raymond James and Associates downgraded AirTran’s stock on Friday to market perform from outperform, citing fuel costs and a lack of pricing power.
In a report, Raymond James analyst Jim Parker said he anticipates AirTran will have “substantial losses and cash burn of over $100 million” in the second half of this year, based on current fuel prices.
Parker also said Delta’s flight capacity versus AirTran is scheduled to increase 3 percent in the fourth quarter compared with a year earlier. “Going forward, AirTran may seek to avoid head-to-head competition in Atlanta and pursue more point-to-point flying to Florida,” according to the report. AirTran has said its Atlanta hub will be getting smaller.
 

Secret Squirrel

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Sorry to hear this, hope this does not last long for you guys/ gals.. Any dispatchers getting the Slip?
Most positions at this company have such high turnover that if they want to reduce the numbers they just wait until people realize how bad they are treated and leave. That is why they did not have to let any flight attendants go. They all just quit. So many quit, from what the FAs have said they might actually have to hire.
 

400ADude

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Most positions at this company have such high turnover that if they want to reduce the numbers they just wait until people realize how bad they are treated and leave. That is why they did not have to let any flight attendants go. They all just quit. So many quit, from what the FAs have said they might actually have to hire.
Geez.
 

Ty Webb

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What a "fluff piece". They should have let Russell Grantham write it . . . maybe it would have been a more accurate piece.

In the interest of accuracy:

1) Before the furlough, we have 1650 pilots, not 1450,

2) The F/A furlough was cancelled because so many quit, arguably due to the buffoonish way the situation was handled, combined with bad summer weather in ATL,

3) Many more pilots put in for LOA than were granted.

4) The whole thing absolutely reeks of rank amateurism on the part of Management, and the Union. This is going to cost much more than it saves, and the Union signed another LOA, further weakening their position and encouraging the drive for MemRat to prevent further "giveaways" to Management

Reporting live from ATL,

Ty Webb
 

maxblast72

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In a report, Raymond James analyst Jim Parker said he anticipates AirTran will have “substantial losses and cash burn of over $100 million” in the second half of this year, based on current fuel prices.
Luckily, the ATL Jet A price has gone down between $0.75 and $1.00 a gallon over the last 6 weeks. Considering that we buy a little over 1 million gallons a day at Airtran, our cash flow should be close to a $1 million a day better today compared to just 6 weeks ago. For a company that spends about $7 million a day total, $1 million in fuel savings is pretty big.

Interesting question will be how does the revenue environment hold up for the Sept-Dec period.
 
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IADBLRJ41

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What is the DOH for that furlough? I feel sorry for the Airtran guys that are being furloughed too. If it is something management is doing to make a point that is a total insult.
 

PRINCE AKEEM

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It would help of some these whore CA's would stop picking up FO opentime...unbelievable
 

mozzer

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When you think of trash.......think of Akeem!
 

relief tube

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Did it change then to Furlough instead of Fire?

Sounds like a circus over there. Wish management would stop treating everyone like they were still at a bad regional and respectfully treat the pilots like this is the airline they'll retire from.

To wish.....
 

njcapt

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Did it change then to Furlough instead of Fire?

Sounds like a circus over there. Wish management would stop treating everyone like they were still at a bad regional and respectfully treat the pilots like this is the airline they'll retire from.

To wish.....
It changed with the NPA BOD's unilateral ratification of LOA 9, which allowed the company to diddle with zero time lines (which they won't use) and keep the s-word training department retreads working in return for the 'fired' guys being reclassified as 'furloughed'. Like it makes any difference. Beelzebub Kolski managed to make the NPA look more weak and worthless than they did before.

As to your second sentiment, you don't get what you deserve, you get what you negotiate.
 

~~~^~~~

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Luckily, the ATL Jet A price has gone down between $0.75 and $1.00 a gallon over the last 6 weeks. Considering that we buy a little over 1 million gallons a day at Airtran, our cash flow should be close to a $1 million a day better today compared to just 6 weeks ago. For a company that spends about $7 million a day total, $1 million in fuel savings is pretty big.

Interesting question will be how does the revenue environment hold up for the Sept-Dec period.
I've been watching and thinking the same thing with the capacity cuts at my airline. Our CFO said with an average price of $116 for the year profitability was questionable. After the shock of $150 oil and $180 to $190 bbl Jet A, I haven't heard of any of the airlines reversing the draw down plans.

Like you, I am hoping it turns around.
 

IFLYASA

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Most positions at this company have such high turnover that if they want to reduce the numbers they just wait until people realize how bad they are treated and leave. That is why they did not have to let any flight attendants go. They all just quit. So many quit, from what the FAs have said they might actually have to hire.
I overheard a flight attendant on the bus saying two AirTran flight attendants were fired because they were stealing credit card numbers from passengers. And now they are here at ASA. Go Figure.
 

maxblast72

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I've been watching and thinking the same thing with the capacity cuts at my airline. Our CFO said with an average price of $116 for the year profitability was questionable. After the shock of $150 oil and $180 to $190 bbl Jet A, I haven't heard of any of the airlines reversing the draw down plans.

Like you, I am hoping it turns around.
I think the $4/gallon Jet A scared our management pretty good. They are now telling are union that they are not going to grow anymore no matter how far down oil drops until we have $700 million in the bank. Selling a few 737's for $3-4 million each and not taking new 737's (which require about $6 million to get off the production line up front) will help us increase liquidity over the next 18 months.

Priority #1 is fix the balance sheet and return to profitability. Priority #2 is growth. As much as that sucks for career progression, I agree it is better for long term stability.
 
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WSurf

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Selling a few 737's for $3-4 million each and not taking new 737's (which require about $6 million to get off the production line up front) will help us increase liquidity over the next 18 months.
Boeing 737 going for 3-4 million a piece? What the hell is Bombardier thinking selling the Q400 TurboProp for 23 million a piece.

3-4 million can't be right can it? If your only gonna get that little you might as well fly the damn thing till the wings fall off (jk of course) instead of selling them at cheap.
 

Britpilot

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Boeing 737 going for 3-4 million a piece? What the hell is Bombardier thinking selling the Q400 TurboProp for 23 million a piece.

3-4 million can't be right can it? If your only gonna get that little you might as well fly the damn thing till the wings fall off (jk of course) instead of selling them at cheap.
That is the profit made from the sale of the new 737's.
 

FlyFastLiveSlow

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Priority #1 is fix the balance sheet and return to profitability. Priority #2 is growth. As much as that sucks for career progression, I agree it is better for long term stability.
Seems more to me like Bob's #1 priority is saving his own ass from being fired.
 

Thedude

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What is the DOH of the most senior furloughee?
 

JT12345

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Guys are on the street with the highest credit lines I have ever seen here, and a ton of open time. I am thinking I will be back in November. Or am I wrong about these values?
 
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